NIGERIA: FROM DOOMED INDIGENISATION TO TORTUOUSPRIVATIZATION PROGRAMME

In view of the precarious socio-economic condition of Nigeria at independence in 1960, the Federal Government established between 1960 and 1970 several industries. Some of the industries were considered by government as ‘strategic’ and capable of stimulating social growth and development. Public corporations were established to run the industries. However, the dominance of state enterprises in the Nigerian economy constitutes a significant drag on the overall growth rate of the country over the years. Public sector investments have greatly contributed to the nation’s burden. In general and contrary to public expectation, the performances of the state owned enterprises have been dismal in term of huge financial losses, poor customer services, and inability to meet demand requirements. Just as the indigenization programme failed (for reasons Stated in this article) the privatisation programme also has its shortcomings, some of which are identified in this article. This article shall highlight the major challenges of both the doomed indigenisation scheme and the current tortuous privatization programme. The article finds that Nigeria is not ripe for the market economy called ‘privatisation’ of state owned enterprises, which has led to considerable loss of jobs in Nigeria. Alternatives to the present wholesale divestiture of state owned enterprises are recommended in this article.